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2022 (8) TMI 1164 - AT - CustomsRate of customs duty on import of power tillers - Concessional rate of 2.5% in terms of Notification No. 12/2012-Customs dated March 17, 2012 [Sl. No. 399(X)] - to be classified under CTH 8432 or not - HELD THAT:- CTH 8432 classifies agricultural, horticultural or forestry machinery for soil preparation or cultivation, lawn or sports ground rollers. CTH 8432 8020 refers to ‘rotary tiller’ under the sub-heading “other machinery” (8432 80). There is no separate tariff sub-heading for ‘power tiller’ in the Customs Tariff - the power tillers are also to be classified under CTH 84.32. It has also been made clear that Circular No. 45/2001 dated August 7, 2001 had been withdrawn. Circular No. 45/2001-Customs dated August 7, 2001, which has been relied upon on behalf of the Revenue, had clarified that “pedestrian tractors”/ “power tillers” were classifiable under CTH 87.01, whereas “rotary tillers” were classifiable under CTH 84.32. In view of the clarification this circular no longer survives. Further, the coordinate Bench of the Tribunal (South Zonal Bench of the Tribunal, Bangalore), in the case of VST TILLERS & TRACTORS LTD. VERSUS COMMR. OF C. EX., BANGALORE [2005 (5) TMI 537 - CESTAT, BANGALORE] has also held that Power Tillers are classifiable under CTH 84.32 of the Central Excise Tariff (which is pari materia to CTH 84.32 of the Customs Tariff). From the product literature of various manufacturers of power tillers/rotary tillers sold internationally under various brands, submitted by BTL, it is also evident that rotary tillers and power tillers are self same goods. To similar effect is the declaration dated December 16, 2019 of the Chinese manufacturer of the power tillers imported by BTL. The said declaration clarifies that the primary function of a power tiller is nothing but a modified rotary tiller, inbuilt with an engine as source of power. The contention that power tillers are different from rotary tillers are based on erroneous premises and thus unsustainable. Power Tillers imported by the importers herein are therefore entitled to the benefit of concessional rate of basic customs duty of 2.5% in terms of the said notification, as per Sl. No. 399(x) of the ‘Table’ thereof. Appeal allowed.
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